Branson paid $543,800 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2020. On that date, the subsidiary had a book value of $401,000 (common stock of $200,000 and retained earnings of $201,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $124.000 fair value. Any remaining excess fair value was considered goodwill. In negotiating the acquisition price, Branson also promised to pay Wolfpack's former owners an additional $56,000 if Wolfpack's income exceeded $130,000 total over the first two years after the acquisition. At the acquisition date, Branson estimated the probability-adjusted present value of this contingent consideration at $39,200. On December 31, 2020, based on Wolfpack's earnings to date, Branson increased the value of the contingency to $44,800. During the subsequent two years, Wolfpack reported the following amounts for income and dividends: 2020 2021 Net Income $ 72,400 82,400 Dividends Declared $ 25,000 35,000 In keeping with the original acquisition agreement, on December 31, 2021, Branson paid the additional $56,000 performance fee to Wolfpack's previous owners. Prepare each of the following: a. Branson's entry to record the acquisition of the shares of its Wolfpack subsidiary. b. Branson's entries at the end of 2020 and 2021 to adjust its contingent performance obligation for changes in fair value and the December 31, 2021, payment. c. Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the equity method. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Branson's entry to record the acquisition of the shares of its Wolfpack subsidiary. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Credit Debit 583,000 1 1 General Journal Investment in Wolfpack Contingent performance obligation Cash 39,200 543,800 Answer is not complete. omplete this question by entering your answers in the tabs below. quired A Required B Required Required D inson's entries at the end of 2020 and 2021 to adjust its contingent performance obligation for changes in fair value and : December 31, 2021, payment. (If no entry is required for a transaction/event, select "No journal entry required" in the it account field.) O Debit Credit Date 12/31/2020 General Journal Loss from increase in contingent performance obligation Contingent performance obligation 5,600 5,600 12/31/2021 11,200 Loss from increase in contingent performance obligation Contingent performance obligation 11,200 12/31/2021 56,000 Contingent performance obligation Cash 56,000 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Credit No 1 Event Accounts Common stock - Wolfpack Retained earnings - Wolfpack Investment in Wolfpack Debit 200,000 248,400 X 448,400 2 S X Royalty agreements Goodwill Investment in Wolfpack 111,600 58,000 X X 169,600 3 A A No journal entry required No journal entry required XX 4 69,000 Equity earnings of Wolfpack Investment in Wolfpack 69,000 5 5 D 35,000 Investment in Wolfpack Dividends declared 35,000 6 E 12,400 Amortization expense Royalty agreements 12,400 Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list transaction list x X Credit Debit 200,000 248,400 O Prepare entry *C to convert parent's beginning retained earnings to full accrual basis. 448,400 > Prepare entry s to record the elimination of common stock and retained earnings. 111,600 58,000 169,600 3 Prepare entry A to record the acquisition-date excess fair values over book values, unamortized balances as of beginning of year. Prepare entry I to record the accrual of equity earnings. 69,000 5 Prepare entry D to record the dividends declared. 69,000 6 Prepare entry E to record excess fair-value amortization 35,000 Note : = journal entry has been entered 35,000 6 E 12,400 Amortization expense Royalty agreements 12,400 Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Prepare consolidation worksheet entries as of December 31, 2021, assuming that Branson has applied the initial value method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Credit No 1 Event Accounts Investment in Wolfpack Retained earnings - Wolfpack Debit 58,800 58,800 2 S Common stock - Wolfpack Retained earnings - Wolfpack Investment in Wolfpack 200,000 248,400 448,400 3 3 A Royalty agreements Goodwill Investment in Wolfpack 111,600 58,000 169,600 4 D > No journal entry required No journal entry required 5 1 35,000 Dividend income Dividends paid 35,000 6 E 12,400 Amortization expense Royalty agreements 12,400